KARACHI: Gold prices in Pakistan surged to an all-time high on Friday, fueled by global market volatility after the United States unexpectedly announced fresh tariffs on Chinese goods, triggering a rush towards safe-haven assets.
In the domestic bullion market, the price of 24-karat gold soared by Rs6,000 per tola, reaching a record Rs2,60,000. Similarly, the price of 10 grams climbed by Rs5,143 to Rs2,22,880. Analysts attribute the surge to heightened uncertainty in the global economy, as escalating trade tensions between the world’s two largest economies sent shockwaves through international markets.
Internationally, gold prices rallied sharply, with spot gold jumping over 2% to trade near $2,500 an ounce — marking one of the steepest single-day gains this year. The rally was driven by fears of a potential slowdown in global trade, prompting investors to hedge against possible economic fallout.
Bullion dealers in Karachi reported a surge in customer activity, particularly among long-term investors seeking to safeguard their wealth from potential currency depreciation and inflationary pressures. “Whenever there is global uncertainty, gold remains the safest bet. The latest US tariff move has shaken market confidence,” said one senior bullion trader.
The US announcement of additional tariffs on $30 billion worth of Chinese imports comes amid already fragile global economic conditions, with investors anticipating possible retaliatory measures from Beijing. This tit-for-tat dynamic has historically led to market instability, with gold often emerging as the preferred store of value.
Financial experts also noted that a depreciating Pakistani rupee added further momentum to domestic gold prices, as import costs for bullion climbed. With the rupee under pressure and inflation still elevated, the local market is expected to remain sensitive to any further developments on the international trade front.
Market watchers caution that while gold’s upward trend may continue in the short term, any signs of resolution between Washington and Beijing could trigger profit-taking. However, for now, investors appear firmly in a “buy” mode, betting on gold’s resilience in turbulent times.
This story has been reported by PakTribune. All rights reserved.